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KYOON GRIFFEY JR posted:We're in Fidelity at ~55 heads but we used Fidelity back when we were ~30 heads. Did not think they would go that low I guess I should have looked first.
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Jan 21, 2020 17:21
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Post-tax brokerage account question. $99k in VFORX $107k in VTSAX $35k in VXUS $33k in VBTLX Married, age 37, 11% of pretax to 401k, wife is around the same percentage on her 401k, we are income-limited against trad IRA contributions, savings account has enough to exist for 3-4 months with zero income. I'm starting to realize that having that high of a percentage in bonds by way of VBTLX isn't helping me out all that much. I've only got around $900 in long-term capital gains. If I'm looking to sell $6k to bring it down to roughly $27k, should I split it evenly between VFORX/VTSAX/VXUS? Or should I proportion it out differently somehow?
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Jan 21, 2020 21:22
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What's your intended asset allocation? You should always balance to that. Are you rebalancing here because we're in a bull market and bonds don't look as sexy or are you rebalancing because your portfolio doesn't match your intended allocation?
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Jan 21, 2020 21:23
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Rebalance with contributions not by buying and selling securities.
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Jan 21, 2020 21:24
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also, do a backdoor roth
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Jan 21, 2020 21:28
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So I may have hosed up by doing a regular Roth contribution when my MAGI may end up over the phase-out limits. Is there some easy way with vanguard to 'undo' and backdoor it? I have a 0 balance rollover IRA from when I consolidated/Roth'd my 401ks from my previous jobs.
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Jan 21, 2020 23:08
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The Big Jesus posted:So I may have hosed up by doing a regular Roth contribution when my MAGI may end up over the phase-out limits. Is there some easy way with vanguard to 'undo' and backdoor it? I have a 0 balance rollover IRA from when I consolidated/Roth'd my 401ks from my previous jobs. I’m in the same boat. I think you need to call vanguard to “recharacterize” the contribution to non-deductible trad IRA, then you can convert it to Roth. I don’t know the tax implications.
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Jan 21, 2020 23:20
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MJP posted:Yeah, $14,400 is a $1200/mo rent situation, and in this part of northern NJ, that's the very lowest you can get if you're lucky for a 2BR in a halfway okay suburb. The parents in question would both be employed but then it turns into I live in Bergen and work in Westchester. With traffic, I had to get daycare in Westchester because I could not guarantee I'd pick up my son in time. Daycare for my infant 5x a week was 2200 a month. We prioritized quality over price, and there were a couple cheaper options available, but it is a pretty penny over here.
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Jan 22, 2020 02:12
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I know a lot of goons like to throw cash into their Roth ASAP at the start of the new year. What's the benefit to this? As opposed to any other time in a calendar year? EDIT: Ah, it reduces taxable income for the previous year, is that right? fart barterer fucked around with this message at 06:24 on Jan 22, 2020 |
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Jan 22, 2020 06:19
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androo posted:I know a lot of goons like to throw cash into their Roth ASAP at the start of the new year. What's the benefit to this? As opposed to any other time in a calendar year? The sooner the money is in there, the more the number goes up.
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Jan 22, 2020 06:21
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androo posted:I know a lot of goons like to throw cash into their Roth ASAP at the start of the new year. What's the benefit to this? As opposed to any other time in a calendar year? withak posted:The sooner the money is in there, the more the number goes up. So contribute asap, don't wait for the next year.
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Jan 22, 2020 06:26
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Because you'll basically get the best results out of investing at the beginning of the year because you expect the market to improve in the long run. https://www.schwab.com/resource-center/insights/content/does-market-timing-work but it seems to be down for me so https://web.archive.org/web/20190428023224/https://www.schwab.com/resource-center/insights/content/does-market-timing-work
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Jan 22, 2020 06:38
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withak posted:The sooner the money is in there, the more the number goes up. Who knew all those hours spent playing RPGs as a kid would translate in to real world skills? Except for my neighbor from freshmen year. He got to 60, his mount, and that sweet axe, but failed out.
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Jan 22, 2020 13:15
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Sobriquet posted:I’m in the same boat. I think you need to call vanguard to “recharacterize” the contribution to non-deductible trad IRA, then you can convert it to Roth. I don’t know the tax implications. When I did this a couple of years ago, I think it was a paper form I had to mail them.
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Jan 22, 2020 13:48
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I’m currently moving some funds from a vanguard retirement to just small index, large, total stock (vtsax), etc. Portions I have so far: Total stock: VTSAX Small cap: VSMAX Mid-Cap: VIMAX International: VXUS Large cap: ? Which large cap is more ideal (or is either fine)? Large cap index VLCAX 500 index fund VFIAX Or am I missing one ?
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Jan 22, 2020 14:57
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VTSAX already contains small/mid/large cap in the right portions so you don't need any more domestic stock unless you purposely want to overweigh some of those for some reason.
drainpipe fucked around with this message at 15:06 on Jan 22, 2020 |
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Jan 22, 2020 15:02
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I have an old HSA from my job that I can no longer contribute to since I am on a different insurance plan now. I don't have lots of medical expenses so it's just sitting there getting hit with a $5 a month fee. I can roll it over to a new plan but for compliance reasons it has to be held somewhere that I can only buy mutual funds or money market funds. Fidelity is out because they allow you to purchase stocks and ETFs and thanks to our genius compliance department it means I can't use them. Any suggestions or should I just deal with the $5 fee?
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Jan 22, 2020 15:30
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Check your local credit unions. My HSA is parked at mine and it's strictly a 1.5% APY interest account. No investment options, but also no fees. Not ideal, but it seems like it would get around the compliance issues you're worried about. Does your current company offer a HDHP option? If so, they likely have a "preferred" custodian that I'm sure would meet your needs.
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Jan 22, 2020 15:42
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Duckman2008 posted:I’m currently moving some funds from a vanguard retirement to just small index, large, total stock (vtsax), etc. You only need something other than VTSAX if you intend to tilt towards a particular market segment. Whether you wish to is entirely your decision, and many people do (tilting towards small caps, and especially small cap value, is fairly common), but if you want to simply reflect the market, all you need is VTSAX.
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Jan 22, 2020 15:56
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Leperflesh posted:also, do a backdoor roth If by backdoor Roth you mean roll the trad IRA into a Roth, I'm deffo already doing that. Also re: selling VBTLX, disregard - I don't know how I mathed it at around 20% of my portfolio but it's close enough to 10% that rebalancing isn't necessary. I'd rather keep 10% in bonds. derra posted:I live in Bergen and work in Westchester. With traffic, I had to get daycare in Westchester because I could not guarantee I'd pick up my son in time. Jesus, yikes. Jersey metro does that to us, I guess.
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Jan 22, 2020 18:05
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derra posted:I live in Bergen and work in Westchester. With traffic, I had to get daycare in Westchester because I could not guarantee I'd pick up my son in time. I have no idea where these places are, but read them in my mind with the world's thickest possible Boston accent.
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Jan 22, 2020 18:40
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How are there not more people saying “I’m going to quit my lovely paying job and open up a daycare”? You’d think #mombosses would be all about that
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Jan 22, 2020 18:51
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Cacafuego posted:How are there not more people saying “I’m going to quit my lovely paying job and open up a daycare”? You’d think #mombosses would be all about that One time we went to drop off mid-morning after a dr appointment. It was chaos. There was music playing, loudly. Several babies were crying. One teacher was completely focused on the task of trying to simultaneously get two kids to nap, where with one arm she was patting one kid in a crib, and with the other arm she was rocking the other kid in a bouncer. And that was just the infant room. For as much as day care costs, you couldn't pay me NEARLY enough to deal with that on a daily basis.
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Jan 22, 2020 18:56
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Cacafuego posted:How are there not more people saying “I’m going to quit my lovely paying job and open up a daycare”? You’d think #mombosses would be all about that
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Jan 22, 2020 18:57
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Cacafuego posted:How are there not more people saying “I’m going to quit my lovely paying job and open up a daycare”? You’d think #mombosses would be all about that How hard could it be, right? I don't have children but of course thought about whenever people complain about daycare. You'd think you could keep 4-5 kids alive for a month for $2k/each but there's probably something complicating it like permissions or liability or something.
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Jan 22, 2020 18:58
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Daycare is hard as hell and the people who do it should be paid more. The only reason they're not is that parents can't afford to pay anymore for daycare. This is why staff turnover tends to be high and why there's a daycare shortage that isn't being filled. It's the paradox of daycare.
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Jan 22, 2020 19:06
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mobby_6kl posted:How hard could it be, right? Parents of young kids are often sick because of their kids getting sick a lot, so I'd assume you'd also be sick like 100% of the time.
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Jan 22, 2020 19:08
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day care centers have high overhead, especially for "high quality" centers that invest in enrichment, training, continuing education, etc. In-home could probably bring in a decent amount of money, even after insurance/licensing/etc., but that assumes you're completely insane and like the idea of dealing with screaming children (and then also spending 10+ hours a day with their kids).
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Jan 22, 2020 19:12
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My mom had an at home daycare from 1990-2001. She only took kids of school teachers from our district, 5-6 kids. This worked well as she had no kids to take care of any time us kids were off of school (other than a few in service days and school year beginning and end). I think my parents did this to basically make our whole house a place of business (write off or something). All I know is my mom never made any income as far as the government is concerned. She liked it but it was some serious work.
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Jan 22, 2020 19:16
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SlyFrog posted:I have no idea where these places are, but read them in my mind with the world's thickest possible Boston accent. Correct principle, wrong metro - thickest possible North Jersey/typical Brooklynite accent.
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Jan 22, 2020 19:44
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alnilam posted:Daycare is hard as hell and the people who do it should be paid more. The only reason they're not is that parents can't afford to pay anymore for daycare. This is why staff turnover tends to be high and why there's a daycare shortage that isn't being filled. It's the paradox of daycare. My wife and I make good money, but the daycares around where we live cost more than my private college tuition did. Who's gonna pay that?!
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Jan 22, 2020 23:05
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Having a baby was a real eye-opener into the world of childcare finances. Daycare is simultaneously something that's expensive enough to burden the consumer while not generating enough revenue to fairly compensate the labor. It's crying out for a policy intervention.
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Jan 22, 2020 23:06
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Pardot posted:Parents of young kids are often sick because of their kids getting sick a lot, so I'd assume you'd also be sick like 100% of the time. I think you build up an immunity. My sister teaches third grade, and said she was sick her entire first year teaching, but only gets sick occasionally now. She was the only member of my family who didn’t catch the bug my son had when we were visiting for Christmas
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Jan 22, 2020 23:33
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pig slut lisa posted:Having a baby was a real eye-opener into the world of childcare finances. Daycare is simultaneously something that's expensive enough to burden the consumer while not generating enough revenue to fairly compensate the labor. It's crying out for a policy intervention. Let me do the math on this... A per-kindergartner room at my kid's daycare has a ratio is 1:10 adult kid ratio with at most 20 kids in the room. At $240 per week per kid, 2 rooms, that's $500K in revenue. There is also a 1:5 room with 15 max @ $260 per kid so $202K. There is a non potty trained rate that is higher, but I'll just use the lower rate. A 1:8 room with 16 max at $300, so 250K. For infants, the ratio is 1:4 with 12 kids in the room at $330 per week. That's $68,640 generated per teacher (206K per room) Everything is always full and requires a waiting list to get in. You can't take a reduced rate for the summer either, and need to keep paying to reserve your spot. There is also an additional materials fee to cover things like arts and crafts during the year, but I'll ignore that for simplicity. They have 10 teachers, 3 admin staff (including the 2 owners), and a kitchen person that preps the food. So the center maxes out at $1,158,000 in revenue for 14 staff member, or averages $83K per faculty member. And that's before the owners take their higher cut and you start paying for things like the food for the kids, rent, insurance, health insurance, taxes, building upkeep, equipment (they just added a new playscape which cost a ton). That said... they are doing well enough that they just expanded into the business space next door and added another infant room.
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Jan 22, 2020 23:48
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Astro7x posted:And that's before the owners take their higher cut and you start paying for things like the food for the kids, rent, insurance, health insurance, taxes, building upkeep, equipment (they just added a new playscape which cost a ton). That stuff adds up to a lot though.
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Jan 22, 2020 23:51
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alnilam posted:That stuff adds up to a lot though. I don't think they're arguing it doesn't? Where I was we figured most of the "lead" teachers etc were making around $20 after many years of service and the assistants/etc were making around $12. This is out in sticksville, Los Angeles County. I feel like there is a reason a lot of these places run out of religious institutions so their rent costs are subsidized.
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Jan 23, 2020 00:01
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And that's why daycare should be provided by the goddamn state via taxes.
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Jan 23, 2020 00:57
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H110Hawk posted:I don't think they're arguing it doesn't? Yeah, My point was there is very little revenue per employee in general. And then they have to pay for all that other stuff. And that’s assuming they are at full capacity 365. The staff probably makes 40K per year and I’m paying $13K per year
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Jan 23, 2020 01:22
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Can someone help me understand why leveraged ETFs are a bad long term investment? I’ve read the articles saying they are and the reasoning seems sound but then I compare the 5 and 10 year returns of TQQQ to QQQ or UPRO to VOO and the results are MUCH better? Is it because we’ve been in an unprecedented decade long rally (with the exception of the drop late 2018)? Even the 2 year return has the leveraged funds overtaking the indexes as of November.
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Jan 23, 2020 03:22
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Because we're in an unprecedented bull market run. Any significant drawdown and you're screwed in those funds because of the leverage.
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Jan 23, 2020 03:31
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